What is the significance of the invisible hand'' in a competitive market?

Question:

What is the significance of the "invisible hand'' in a competitive market?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

See More Books

Question Posted: Mar 17, 2016 04:57 AM

See More Questions

What is the significance of employee selection?
What is the significance of common law and case law?
What is the significance of theThor Power Tool Co.decision?
What are the key issues associated with managing an international assignment?
Write the business rule(s) that governs the relationship between AGENT and CUSTOMER.
In addition to the internal audit function, what other internal functions may provide independent assurance to the board or senior management?
A bin of 50 manufactured parts contains 3 defective parts and 47 nondefective parts. A sample of 6 parts is selected without replacement. That is, each part can be selected only once, and the sample...
It is known that the connecting rod AB exerts on the crank BC a 2.5-kN force directed down and to the left along the centerline of AB. Determine the moment of that force about C. 144 mm 56 im m 42 mm
Helix Corporation uses the weighted - average method in its process costing system. It produces prefabricated flooring in a series of steps carried out in production departments. All of the material...
3. Consider a nuclear reactor operating with a constant power of 0.5MWt. From t=0, the reactivity was changed as given in the following figure : p(reactivity) 0.1$ 0 10 50 Assume that the delayed...
A firm's long-run total cost curve is TC(Q) = 40Q 10Q2 + Q3, and its long-run marginal cost curve is MC(Q) = 40 20Q + 3Q2. Over what range of output does the production function exhibit economies...
Why does a market clear when the government imposes an excise tax of $T per unit?
The following are some of the operating performance indicators used by Canadian Pacific Railway (CPR). 11 Determine an appropriate measure of CPR's labour (employee) productivity using some of the...
The Narrative Paradigm suggests that when an expert argument is compared to a good story, the expert argument will fail because it will lack the coherence and the fidelity that a narrative possesses....
What approach to theory building does Petronio take in CPM Theory (laws, rules, systems, or some combination)? Explain your answer.
Aristotle spent a great deal of time discussing the role of the audience. If you were giving a speech on safety to a group of convenience store employees, what sort of audience analysis would you...
Discuss the delicate balance between sufficient group cohesion and exceedingly high amounts of group cohesion. Illustrate your response with examples from your own group experiences.
What support does Fisher have for his contention that all communication is narration? Can you think of some communication that is not narrative in nature? If all communication is narration, do you...
In Exercises find dy/dx by implicit differentiation. xy = xy + 1
Suppose that the electrical potential at the point (x, y, z) is E(x, y, z) = x + y - 2z. What is the direction of the acceleration at the point (1,3,2)?
Consider an economy with just one technique available for the production of each good, food and cloth: a. Supposing land is unlimited but labor equals 100, write and sketch the production possibility...
Suppose the production possibility frontier for guns (X) and butter (Y) is given by X2 + 2Y2 = 900 a. Graph this frontier. b. If individuals always prefer consumption bundles in which Y = 2X, how...
Robinson Crusoe obtains utility from the quantity of fish he consumes in one day (F), the quantity of coconuts he consumes that day (C), and the hours of leisure time he has during the day (H)...
Calculating Present Values Imprudential, Inc., has an unfunded pension liability of $645 million that must be paid in 25 years. To assess the value of the firm's stock, financial analysts want to...
Describe the operating activities of each company noting similarities and difference between COCA COLA & PEPSICO. Identify two economy wide factors and industry wide factors that could impact on the...
The trial balance for a company listed the following account balances at December 31, Year 1, the end of its fiscal year: cash, $36,000; accounts receivable. $31,000; Inventory, $45,000; equipment...

What is the significance of the invisible hand'' in a competitive market?

Question:

Step by Step Answer:

In a longrun equilibrium a competitive market allocates resources effi...View the full answer

Microeconomics

Students also viewed these Economics questions